Lakewood residents voted to give up their TABOR refunds forever. The measure started with Lakewood encouragement, used tax dollars to see what words messaged the best, and raised over $50,000 from people who benefit from city dollars. The money will be used for basic city services like parks and public safety, freeing up money for other city pet projects such as electrification and homeless initiatives.
The final vote tally came out 61.7% in favor, 38.2% against.
The first campaign committee report showed that a majority of city council members donated to the committee including Councilors Sinks, Low, Shahrezaei, Rein, LaBure, Nystrom and Mayor Strom. Greg Stevinson also donated $10,000. Stevinson just had more land annexed by Lakewood in May, 2023.
The second report shows the Lakewood Police Union and Fraternal Order of Police Lodge 21 each made $10,000 donations.
An interesting note is the $5,000 donation from the Colorado Gives Foundation. In 2024, Lakewood started a partnership with the foundation, appropriating $500,000 to give them* to develop more affordable housing (see budget book pg 23).
*Correction 13 Nov – Lakewood appropriated the money to spend on Colorado Gives affordable housing projects but is not giving the money directly to Colorado gives.
This circular relationship shows that the TABOR refunds will not just affect parks and potholes, as sold by Lakewood.
Ironically, a day before the election, Councilor Roger Low went on a rant during the City Council meeting, expressing outrage that a resident petition was not honest with the residents who were signing it. He said that if residents were asked to sign a petition that is probably illegal, they wouldn’t have gotten as many signatures, and his hypothetical description is a “much more accurate title”.
This sentiment was echoed by the majority of councilor, just like they agreed with the TABOR initiative language that there will be no new taxes. However, the city leadership failed to disclose that no new TAX RATES is not the same as no new TAX REVENUES.
Lakewood residents will be paying increasing Lakewood tax revenues with the passage of this measure. The amount in resident pockets will get be lessened.
Lakewood resident Wendy Purcell has formed an issue committee to fight against Lakewood’s ballot initiative 2A to keep your TABOR refunds. This is a David vs Goliath story. What makes someone step up when the entire city government is against her? Lakewood Informer asked her.
*Updated with links to previous articles below
What made you decide to start an issue committee against the city’s TABOR initiative?
We are so lucky to have Natalie Menten as our TABOR watchdog all these years in Colorado. I am a handful of concerned citizens that want to keep TABOR refunds for Lakewood residents. Thanks go to Mary Janssen & Lynnda Gies to help get the word out about the city of Lakewood’s TABOR constant requests to take our refunds away forever.
Do you think you can compete with the big money the establishment has raised? Stevinson gave $10,000 and the majority of City Council has contributed.
Yes we can
Why do you think Lakewood can survive without your TABOR refund money? Every department is making statements about how dire things will be if they don’t get more money. Are they believable?
No. The city needs a balanced budget to expand the city as quickly as possible without any pushback from the residents the city depends on. The city is lobbying through through taxpayer-funded communication agents and established facebook channels.
How does an everyday resident like you get your message out?
We had a few posts on a some websites. Lynnda Gies & I canvassed the intersection of Alameda & Garrison on 10/20/2024 & got a positive response from the drivers for voting NO on Lakewood 2A.
Lakewood will vote on a property tax increase on Monday. This will be done through the normal budget appropriation and mill levy certification. It is not called a tax increase anywhere. However, the 2025 Budget Book, page 62, explains that a temporary reduction in the mill levy rate will lapse in 2025. As a result, Lakewood residents will pay 6% more property taxes and Lakewood will collect an extra $15.5 million in 2025.
Property tax revenue and % change for 2025 (from page 62 of the 2025 Budget Book)
In 2023, former Councilor Mary Janssen fought to get Lakewood to comply with the Lakewood City Charter and only collect revenues that are legally allowed. That equated to a property mill levy rate of 3.85%. Lakewood Charter has a revenue cap, not a tax rate cap, to protect its residents from windfall taxes, like abrupt property assessment increases. City Council did not agree to Janssen’s original proposal, but they did lower the mill levy to 4.28 mills.
For one year.
Now that year is up.
On Monday, the Council will vote to approve the full mill levy of 4.711 mills, thereby increasing the rate by 0.431 mills from 2024.
Your property taxes will go up again this year.
“Natalie Menten, board director with the Taxpayer’s Bill of Rights (TABOR) Foundation, emphasized the importance of TABOR’s protections: ‘According to paragraph 7(c), the maximum annual percentage change in each district’s property tax revenue equals inflation in the prior calendar year plus annual local growth (new construction). That safety cap protects taxpayers and gives very sufficient additional revenue to government agencies. Voters shouldn’t waive any tax revenue cap unless it comes with the 4-year sunset prescribed in TABOR.”
In 2023, then-Councilor Janssen found out Lakewood revenue from property tax was increasing 12.87%. The City Charter only allows for a 7% increase in revenue growth (see City Charter 12.12)
“Growth from projected 2023 to projected 2024 Property Tax Revenue is 12.87%”- Holly Björklund, Chief Financial Officer, Lakewood, 2023
Lakewood will increase property tax revenues over the amount permitted in charter, as they have in previous years, while advocating to keep your TABOR refunds.
Explanation of Overcharging from Bob Adams
Every two years (odd numbered years), Colorado requires all real estate to be reappraised. This was done in 2023 and resulted in a huge increase in property valuations. This reappraisal applied to property taxes paid in 2024. The Assessor uses the newly appraised county real estate inventory to prepare a report of the assessed value which is provided to all county tax authorities. Based on that report, the tax authorities are supposed to calculate the overall mill levy needed to provide services (pay their budget) for the following year. The approved mill levy is then used to calculate individual tax bills.
As published by the Colorado Division of Property Taxation:
“Each year county commissioners, city councils, school boards, governing boards of special districts, and other taxing authorities determine the revenue needed and allowed under the law to provide services for the following year. [In other words, prepare a budget]
Each taxing authority calculates a tax rate based on the revenue needed from property tax and the total assessed value of real and personal property located within their boundaries. The tax rate is often expressed as a mill levy.”
If the law was followed properly, there would be only a minimal tax increase.
However, Jefferson County and nearly all county tax authorities, including Lakewood, failed to adjust the mill levies downward to equal their budgets. Even Governor Polis sent a letter to all tax districts urging them to reduce mill levies. Most refused. Instead, nearly all kept a higher mill levy which resulted in property owners being overcharged and the districts received a huge windfall in increased tax revenue. Now, of course, the city and county have introduced ballot measures to allow them to keep and spend the overcollected tax revenue this year, next year and every future year. and eliminate all other revenue caps so they can freely raise taxes without a vote of the people now required by TABOR.
This is the cause of how tax revenues were overcharged and overcollected.
The 2025 budget presentation included a sales pitch to keep your TABOR refunds. Each department made note of which projects would be funded by TABOR and made a simple statement along the lines of “Without the additional TABOR revenues, the city will have less revenue.” Lakewood’s Chief Financial Officer, Holly Bjorklund, dedicated extra slides detailing how TABOR retained tax funds were used, by the specific project and by the department, to make an impressive list of accomplishments. Staff did not note which projects would go away if sales tax revenue decreased. There was no note detailing ways to increase sales tax revenues through economic development. No Council Member asked to spend less.
TABOR retained funds accounts for 1.23% of all funds. In contrast, sales tax is the biggest source of revenue at 41%. Sales tax is also used for parks and police and all other city functions. It would be normal to focus on the bigger percentage of funds to present a clear budget picture. Instead, Lakewood focused on the single-digit, smaller source of funds. Coincidentally, Lakewood initiated a ballot vote to retain these funds permanently into the future.
TABOR is the most mentioned fund but among the least significant.
All this focus on TABOR by the city is to influence the upcoming vote that the city sponsored. If you have any doubts about Lakewood influencing your vote, see the list of TABOR-funded projects that the city has thoughtfully provided on its website.
There would be no need to focus on one, little, over-collected fund if the city would:
Spend within budget limits
Maintain a balance between residential service expenditures and incoming revenues
Maintain business growth to residential growth proportions
Note the jump in retained TABOR fund in 2017, coincident with the city’s ability to retain. “Through the ballot measure in 2018, Lakewood voters approved lifting the TABOR limits on the city’s budget from 2017 through 2025” – Lakewood 2025 Budget Book
